TFSA excess amount correspondence explained

The CRA may send out a letter or a proposed TFSA return to Canadians who, under certain situations, may have over contributed to their TFSA. You may also receive a proposed TFSA return if you made contributions to your TFSA while you were not a resident of Canada.

TFSA excess amount letter

If you receive a TFSA excess amount letter and you have already removed the excess amount, you do not have to do anything else. If you have not removed the excess, it should be removed immediately. For information on your current year room limit, go to My Account (for your room limit as of January 1) or complete Form RC343, Worksheet - TFSA contribution room if you have contributed to your TFSA in the current year.

Proposed TFSA return package

The proposed TFSA return package normally includes the following:

  • Cover letter – It provides general information about TFSA rules and instructions regarding what you need to do to respond to the proposed return.
  • RC243-P, Proposed Tax-Free Savings Account (TFSA) Return - This proposed TFSA return shows the taxes we have calculated and is based on the information we received from your issuers. The proposed TFSA return is not a formal assessment of tax.

Responding to the proposed return package

This proposed return does not represent a formal assessment of tax. Although you cannot file a notice of objection on a proposed TFSA return, the following options are available to you:

  1. If you agree with the information on the TFSA return, sign, date, and include your social insurance number. You can make your payment electronically, by going to My Payment—save time, pay online! We will issue an assessment based on this return.
  2. If you do not agree with the TFSA return and you would like us to review your situation, send a letter to the address indicated below. Include a detailed explanation and any additional documentation you may have about the excess contributions along with proof that your excess TFSA amount has been corrected.

 

Canada Revenue Agency
TFSA Processing Unit
Sudbury Tax Centre
PO Box 20000 Station A
Sudbury ON  P3A 5C1

Or

Canada Revenue Agency
TFSA Processing Unit
Winnipeg Tax Centre
PO Box 14000 Station Main
Winnipeg MB  R3C 3M2

We will review your request and send you a letter explaining our decision. If we do not receive a response from you, we will issue an assessment based on the information on file. This assessment will include any penalties and interest that may apply.

Waiver or cancellation of the TFSA taxes 

We may waive or cancel all or part of the taxes if we determine it is fair to do so after reviewing all factors, including whether:

  • the tax arose because of a reasonable error
  • the extent of which the transaction or series of transactions that gave rise to the tax also gave rise to another tax under the Income Tax Act
  • the extent to which payments have been made from the person's TFSA

To consider your request, we need a letter that explains why the tax liability arose, and why it would be fair to cancel or waive all or part of the tax. Send your letter to one of the following addresses: 

Canada Revenue Agency
TFSA Processing Unit
Sudbury Tax Centre
PO Box 20000 Station A
Sudbury ON  P3A 5C1

Or

Canada Revenue Agency
TFSA Processing Unit
Winnipeg Tax Centre
PO Box 14000 Station Main
Winnipeg MB  R3C 3M2

Report a problem or mistake on this page
Please select all that apply:

Thank you for your help!

You will not receive a reply. For enquiries, contact us.

Date modified: